History
The origins of the company can be traced back to the Two Guys discount store chain, founded in 1947 by brothers Sidney and Herbert Hubschman. [2] In 1959, Two Guys acquired O. A. Sutton Corporation, manufacturers of the Vornado line of electric fans, and the company was renamed Vornado Inc. [2]
By 1964, the company operated over 200 stores. [3] In the 1970s, Vornado began divesting its retail operations. In 1978, the company sold 80 Two Guys locations in California. [2]
In 1980, Interstate Properties, a real estate development company controlled by Steven Roth, acquired an 18% stake in Vornado due to its real estate holdings. [2] In 1981, Interstate Properties took control of the firm after winning a proxy fight against existing management and reduced the number of stores in operation to 12. [4] [5]
In 1986, Interstate Properties and Donald Trump each bought approximately 20% of Alexander's, a failing retailer whose real estate holdings included a store that occupied the entire block between East 58th and 59th streets and Lexington and Third Avenues in Manhattan. [6] In 1988, they each raised their stakes to 27% of the company, but Trump pledged his interest as collateral for a personal loan from Citicorp and in 1991, Trump was forced to turn over his holdings to Citibank. [7] In 1992, Roth and Alexander's creditors forced Alexander's into bankruptcy and all 11 of its stores were shut. [8] Alexander's emerged from bankruptcy in 1993 as a real estate investment trust. That same year, Vornado Inc. was converted into a REIT, Vornado Realty Trust. In 1995, Vornado bought Citicorp's interest in Alexander's. [9]
In 1989, the Vornado name was licensed to Vornado Air, a new company formed to manufacture heating and cooling equipment.
In April 1997, the company acquired a portfolio of office buildings in Manhattan from Bernard H. Mendik in a $654 million stock transaction. Mendik became co-chairman of Vornado until his resignation in October 1998. [10]
In February 2001, Vornado Realty Trust won the bid for a 99-year lease for the World Trade Center, offering $3.25 billion. [11] Silverstein Properties was outbid by $30 million by Vornado. However, Vornado balked over lease terms and possible tax liabilities. [12] Silverstein signed a lease for the World Trade Center in April 2001, [13] five months before the September 11 attacks.
In October 2001, the company acquired Charles E. Smith Commercial Realty, owner of assets primarily in Arlington, Virginia, in a $1.58 billion transaction. Robert H. Smith and Robert P. Kogod were added to the board of directors of Vornado. [14]
In 2005, the company bought a 32.5% interest in Toys "R" Us. [15] Toys "R" Us filed bankruptcy in 2018 and the investment was written off. [16] [17] [18]
In 2013, Steven Roth replaced Michael D. Fascitelli as CEO of Vornado. Fascitelli had been CEO since 2009. [19]
In 2015, the company completed the corporate spin-off of its interest in Urban Edge Properties, owner of retail holdings outside Manhattan. [20]
In 2017, the company merged its Charles E. Smith Companies subsidiary into the JBG Companies, forming JBG Smith. [21]
US$1.79 billion (2024)
